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PurposeCorporate occupiers require offices and services which meet their business needs, while landlords must attract and retain occupiers to maximise occupancy and rental income. The purpose of this paper is to help landlords and property managers understand what aspects of property management matter most to corporate occupiers, so that they can achieve a mutually beneficial relationship.Design/methodology/approachThis paper analyses interviews with 1,334 office tenants in the UK, conducted over an 11-year period, to investigate determinants of occupier satisfaction, loyalty and advocacy. Structural equation modelling and regressions are performed using respondents’ ratings of satisfaction with many aspects of occupancy as explanatory variables. The dependent variables include satisfaction with property management, value for money, overall occupier satisfaction, lease renewal intentions and occupiers’ willingness to recommend their landlord.FindingsThe aspects with most impact on occupiers’ satisfaction are the office building itself, its location and amenities, and also communication with their property manager, a belief that their business needs are understood and the property manager’s responsiveness to occupiers’ requests. Occupiers’ loyalty depends mainly upon feeling that their rent and service charges provide value for money, an amicable leasing process, the professionalism of their property manager and the corporate social responsibility of the landlord. “Empathy” is crucial to occupiers’ willingness to recommend their landlord, and clear documentation and efficient legal process improve occupiers’ perception of receiving “Value for Money”.Research limitations/implicationsThe sample is skewed towards occupiers of prime office buildings in the UK, owned by landlords who care sufficiently about their tenants to commission studies into occupier satisfaction.Practical implicationsThis research should help to improve the landlord – tenant relationship, benefitting the businesses that rent property and helping building managers understand where to focus their efforts to achieve maximum effect on occupier satisfaction, loyalty and advocacy.Originality/valueThere has been little academic research into the determinants of satisfaction of occupiers of UK commercial property. This large-scale study enables the most influential factors to be identified and prioritised.
Journal of Corporate Real Estate – Emerald Publishing
Published: May 9, 2016
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